House debates

Thursday, 18 November 2010

Matters of Public Importance

Broadband

4:10 pm

Photo of Luke HartsuykerLuke Hartsuyker (Cowper, National Party, Deputy Manager of Opposition Business in the House) Share this | Hansard source

I certainly welcome the opportunity to speak in this matter of public importance on the National Broadband Network. It is interesting to hear the member for Grayndler, the Minister for Infrastructure and Transport, quoting from the OECD, but they were very selective quotes indeed. What did the OECD actually say about infrastructure in regard to its recommendations rather than what the OECD said about how the government had justified its decision to proceed with its project? The OECD said with respect to infrastructure:

  • Systematically publish the cost/benefit analyses with sufficient details for the projects evaluated.

That is the very nub of the discussion we are having today. It is disregarding the recommendation of the OECD, an organisation it seeks to quote, because it will not publish a cost-benefit analysis. The OECD went on to say:

  • Independent evaluation should be made mandatory for investment projects exceeding a certain amount.

I have to say that $43 billion is a very substantial ‘certain amount’ indeed. The OECD also went on to say:

An alternative to this picking-the-winner strategy would be to let the market guide choices between the various Internet service options on the basis of prices that reflect costs, factoring in externalities that ought first to be evaluated. To that end, it would be desirable to maintain competition between technologies and, within each technology, between Internet service providers. This would be consistent with the planned vertical separation of Telstra and with other aspects of the reform that seek to promote competition.

There we have what the OECD says. But what is the government doing? It is pretty much doing the opposite. It is actually eliminating competition. It is creating a new 21st century Postmaster-General so that it can create its own cosy monopoly. Why do we need this monopoly? We need this monopoly to ensure that the government can keep prices up. That is what this is all about. It is not about, as it is claiming, cheaper internet services; it is about creating a situation where it can artificially retard competition to push up prices.

This week we have seen the government directly voting against the interests of taxpayers and directly voting against the interests of consumers. In doing so, the government has voted down the best chance it has to provide affordable broadband to all Australians. We saw today the Labor government vote against sending the National Broadband Network to the Productivity Commission for a vitally important independent analysis. We have the minister refusing to release the business case for the NBN, despite the Senate ordering its release yesterday through the coalition and crossbenches. The government has voted against submitting the $11 billion deal with Telstra to the ACC for analysis and Labor is still refusing to allow a joint standing committee of the parliament to oversee the NBN rollout.

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